Creating Corporate Culture

Introduction

A lot of people do not understand that culture is man-made in the sense that it is formed through events which take place in history in order to help individuals cope with their environment. When we begin to explore how it has been formed it becomes easier to unlearn it.

The redundant organizational rituals begin to be demystified and new rituals formed. This is important because a key role of a leader is to create culture. It is also important for us to also keep in mind that ‘organizational culture’ exists in the broader context of our national culture.

Organizational culture has a great influence on decision-making and problem-solving at all levels. Therefore, if we want to influence organizational decision-making, we need to first explore the assumptions behind the cultural framework.

We are beginning to discover the role of leaders as architects. In the past, there has been the tendency to focus on building things that are tangible, but more and more it is becoming clear, that leaders have a role in creating culture.

In doing business God’s way its important to know that God values pattern and principle. His kingdom has a culture and throughout scripture we see God establishing and reinforcing His pattern even when it would go against the grain. The Kingdom of God is a counter culture. Examine this in the following verses:

2 Tim. 2:2 “….entrust to reliable men who will also be able to teach others also.”Rom. 12:2 “Do not be conformed to the pattern of this world.”Titus 2:1-6 “….In everything set them an example by doing what is good…”

Jesus came and created a new culture by challenging the status quo.

For lasting change to occur in our organizations, a change in organizational culture becomes necessary. It is crucial for leaders to know how to bring about cultural transformation to their organizations. In order for this to happen, they need to understand what organizational culture is. Therefore, this lesson starts by explaining what organizational culture is.

I. What is Organizational Culture?

A. Organisational culture is shared and implicit.

B. Organisational Culture consists of Values, Norms and Beliefs.

C. Organisational culture is often unnoticed until it interfaces with other cultures.

D. Organizational culture manifests itself in various forms.

E. Organisational culture operates at different levels.

F. Organisational culture often stems from three main sources.

II. What is the function or purpose of organsisational culture?

A. Organisational culture gives members an organizational identity.

B. Organisational culture facilitates guiding principles for work processes.

C. Organisational culture creates a framework for decision-making.

D. Organisational culture shapes behaviour by helping members make sense of their surroundings.

E. Organizational culture is a good metaphor for communicating lasting change.

III. In what ways can we categorize corporate culture?

A. The Sage: Hierarchy Culture

B. The Caregiver: Clan Culture

C. The Creator: Adhocracy Culture

D. The Warrior: Market Culture

IV. What is the impact of culture on corporate performance?

A. Culture affects the description of problems and how we come about to solutions.

B. Culture affects our view of possibilities.

C. Culture affects how we measure, formulate and define success (cognitive maps).

D. Culture affects the implementation strategies and how they are carried through.

E. Culture affects our reward systems; who we reward and why.

F. Culture affects what is tolerated and what is celebrated.

G. Culture affects decision-making on promotions and dismissals.

H. Culture affects how we allocate resources.

V. How can one diagnose the culture of one’s organization?

1. What beliefs are strongly held?

2. How do parents/leaders teach children/employees to behave?

3. What do people regard as major sins?

4. What do people do in crises?

5. What rituals do people perform?

6. What are the greatest fears people have?

7. Who are the trendsetters?

8. Who are the cultural heroes?

9. What is expressed in the art forms of the people?

10. What aspects of the culture are most resistant to change?

11. What are considered to be words of wisdom?

VI. In what way can a new culture be established in an organization?

Embedding Mechanisms Articulation and Reinforcement Mechanisms

What leaders pay attention to, measure, control, and reward on a regular basis.

Design and structure.

How leaders react to critical incidents and organizational crises.

Rites and rituals.

Deliberate modeling, teaching, and coaching.

Space design, facades, and buildings.

Criteria by which leaders allocate rewards and status.

Legends and myths about people and events.

Criteria by which leaders recruit, select, promote, retire, and ex-communicate organizational members.

Formal communication of organizational philosophy, values, and creed.

Conclusion

There is an organizational culture that is developing today. It is characterized by long working hours, cost reduction, a short-term contract culture, and so-called “stable insecurity” in organizations. (This is characteristic of the new entrepreneurial contracts within large organizations). It is paramount that we understand that we can create culture and do not have to leave it to chance…

Understanding organizational culture is therefore a central and foundational aspect of organizational behaviour.